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During its fiscal year ended June 30, 2011, Cliff City issued purchase orders totaling $5,000,000, which were properly charged to Encumbrances at that time. Cliff received goods and related invoices at the encumbered amounts totaling $4,500,000 before year-end.
The remaining goods of $500,000 were not received until after year-end. Cliff paid $4,200,000 of the invoices received during the year.
What amount of Cliff's encumbrances were outstanding at June 30, 2011?
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